Brussels, 27/11/2000 (Agence Europe) - Commission considers measures taken by the Portuguese government aimed at preventing a public takeover bid, presented by Secil Companhia Geral de Cal e Cimentos SA and Holderbank for the company Cimpor Cimentos de Portugal SGPS, were incompatible with the Community competition law.
According to Article 21 of the regulation on mergers, the Member States are entitled to take adequate measures in order to protect "legitimate interests" such as public safety, media plurality and prudential rules. All other public interests that justify restrictions must be communicated by the Member States concerned to the Commission, which will then examine their compatibility. In the case in hand, the Commission noted that, by opposing the proposed bid, the Portuguese government violated the obligations conferred by Article 21 for two reasons. The ban did not aim at the public interests defined by the article and Portugal did not notify to the Commission any other motives, as was its duty. Also, no valid argument had then been put forward by the authorities of this Member State against the Community Executive request. After establishing these facts, the Commission decided to reject the measures taken by the Portuguese government. The latter was enjoined to take the measures necessary in order to relate to the decisions taken regarding the project and to comply with Community legislation. In July this year, Commissioner Monti had expressed concern about the position FO the Portuguese authorities on this subject (see EUROPE of 13 July, p.13).